Components

Primary File (Part A)
Part B

Beam Inc.: The Dilution of the Maker's Mark Brand (A) and (B)

Klinger, R., Laughner, T., MacDonald, K. and O’Rourke, J.S. (Editor)
February 2, 2018
SKU:
BUS-004751
Region: 
North America
Topic: 
Strategy & General Management
Length: 
10 pages
Keywords: 
Brand Management, Conflict Management, crisis management, customer communication, Food and Beverage, social media
Student Price: 
$4.00 (€3.7)
Average rating: 
4.454545

Maker’s Mark may be part of a premium spirits portfolio but maintaining its authentic history is still important to the brand. When faced with the challenge of growing demand and an insufficient supply of whiskey, the Maker’s Mark management team needs to decide if diluting their whiskey is the best way to meet demand.

Learning Outcomes: 
  1. To highlight the conflict that arises when a company tries to adjust what it thinks might be best for its sales and how those decisions affect various stakeholders;
  2. To provide an example of a company that makes a public announcement and doesn’t get the reply it was expecting;
  3. To encourage analysis of a business strategy that may have been flawed and evaluate other possible alternatives that may have been better received;
  4. To demonstrate how a company can adapt to changes in its industry but maintain their consumer base;
  5. To encourage discussion about how social media affects business strategies and decisions.

Reviews

Rating: 
5

Undergrads and MBA's alike LOVE this case. Haters will say it's only because of the subject material, but there truly is some great depth in the business strategy here. There's a real gem on the slides about Jack Daniels having essentially pulled off the same shenanigans in the past. I recommend posting a link to the Ad Age short piece "Weaker Jack Daniels Becomes Spirit Strongman." Students then enjoyed discussing how social media might have changed the spread of information since that incident in 2005, and we got to probe the question of when data from other companies is or is not particularly predictive for a current business decision. I use this in Marketing Management, but I've also mentioned the scenario in Consumer Behavior as a concrete example of Just Noticeable Difference (i.e., Beam wanted to test various strengths to find a reduction that was below the threshold of detectability. BUT once consumers have the expectation something is going to taste different, that can affect their perception. So there's this super interesting tension where Beam more had to worry about the psychology of what difference in ABV would make consumers mad, rather than the more objective taste profile.)

Rating: 
5

This was a unique case in that it showed Maker's Mark's possible strategies and the result of their decision. While there was significant detail in the case, it allowed me to also generate my own thoughts on possible strategies.

Rating: 
4

I enjoyed that the case was talking about a recent marketing problem. It not only gave us the necessary information we would need to answer the case question, but it gave us more information which made it easier. Very organized and easy to navigate.

Rating: 
4

This case was interesting to study and was relevant to marketing aspects that students may face in future careers. The fact that it was recent made it more enjoyable to write about and it was practical for case writing in general.

Rating: 
4

This case is open-ended enough for students and professors to talk about it in many different ways. The topic was interesting and the background of the company was explained clearly and thoroughly. I would recommend this case to other students and professors.

Rating: 
4

I felt as though the Maker's Mark information given through ignited.global was very thorough and helpful without leading into any sort of bias by any means. It allowed us access to all of the information regarding their concerns while also sharing with us the other options the company was considering doing before they made their ultimate decision. Although I disagree with the decision they made, the information given allows us a true glimpse into their reality and explains why they choose the path they take.

Rating: 
5

The case on Makers Mark was a very clear, understandable case. It was outlined well and presented professionally. The Power Point given also helped make the case more easily understandable. I would definitely recommend using this case again for future classes as it pertains to some of the college lifestyle as well as a current marketing problem.

Rating: 
5

We recently used this case on makers mark for a study in my marketing management class. This case was really well organized and gave us all the information we could have needed. It was also very interesting to learn a little about a company that I knew nothing about prior. Ease of use was much better than other websites I have used for cases.

Rating: 
4

Our group felt the case was well done and put together. We felt it had more background information than needed especially with there being two parts. The beginning of Part A & Part B were very similar, which caused us to feel a lack of necessity to read both parts. While our professor changed the case question slightly, it was flexible enough of a case that we could answer the question effectively. Overall, we would recommend this case to professors and students.

Rating: 
4